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3 July 2026<\/p>\n
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Seventeen of Australia\u2019s leading medical industry and science organisations have written to the\u00a0Albanese Government to express serious concern with the Federal Budget\u2019s proposed changes to the R&D tax incentive (RDTI). <\/p>\n
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Industry leaders across biotech, medtech, health tech, pharmaceuticals, science and research have co-signed a letter to Treasurer Jim Chalmers, requesting an urgent meeting and asking the Government to undertake an immediate industry consultation, noting that the Budget proposals are already impacting innovative business investment decisions. \u00a0<\/p>\n
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Two proposed changes to the RDTI risk undermining science-based, deep-tech industries in Australia:<\/p>\n
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Limiting the refundable RDTI offset to companies less than 10 years old.
\nRemoving eligibility of \u2018supporting\u2019 R&D activities from the RDTI.<\/p>\n
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AusBiotech CEO Rebekah Cassidy said the proposed changes would have a devastating and lasting impact on Australian science including the biotech, medtech and health tech sector.<\/p>\n
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\u201cAustralia\u2019s thriving and growing biotech, medtech and health tech sector is dedicated to improving and saving lives, but has been at a crossroads since Budget night,\u201d Ms Cassidy said.<\/p>\n
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\u201cLimiting the refundable RDTI offset to companies less than 10 years old does not align with the reality of what are well documented, lengthy development timelines to bring new health and other STEM innovations to market. Ten years is not a long period in life sciences and other science-based industries. <\/p>\n
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\u201cIn biotech, medtech and health tech for example, Australian companies are developing products that are by necessity highly regulated. They navigate long, R&D intensive phases of pre-clinical development, clinical trials, clinical manufacturing and scale up, regulatory approval and market access. There are simply no short cuts, and nor should there be. <\/p>\n
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\u201cWhile the intent of the RDTI change is understood, company age is a poor proxy for commercial maturity, growth potential or R&D intensity in science-based sectors like life sciences. <\/p>\n
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\u201cThe proposed changes risk encouraging early-stage research in Australia while pushing later-stage development, manufacturing and commercialisation activities offshore. The latter part is where the most economic opportunities and potential lies, and we don\u2019t want to lose it.<\/p>\n
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\u201cAdditionally, proposed changes to the treatment of \u2018supporting R&D\u2019 activities may unintentionally exclude activities from RDTI eligibility that are critical to developing innovative technologies on shore in Australia, such as the manufacture of products for clinical trials.\u201d<\/p>\n
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Ms Cassidy said there was an urgent need for the Government to engage industry constructively on the proposed changes. <\/p>\n
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\u201cThis is a globally mobile and connected sector where major markets are actively seeking to attract the talent and capability we have fought so hard to build over decades in Australia,\u201d Ms Cassidy said.<\/p>\n
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\u201cDecisions about where clinical trials are undertaken, where investment is deployed, and where companies establish long-term operations, including manufacturing, are made years in advance and are now being influenced by perceptions of Australia’s future competitiveness.<\/p>\n
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\u201cLet\u2019s be clear, while the changes aren\u2019t due to take effect until 2028, they are already influencing decisions. Our sector is urgently seeking a meeting with the Treasurer and a consultation process to bring forward a resolution. <\/p>\n
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\u201cThere is a pathway forward. We want to work collaboratively with Government to get these policy settings right, so that Australia\u2019s life sciences and science-based industries can continue to grow and prosper.\u201d<\/p>\n
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The signatories to the letter are: AusBiotech, ANDHealth, Association of Australian Medical Research Institutes, AUScelerate, Australian Academy of Technological Sciences and Engineering, BioMelbourne Network, BioNSW, Cicada Innovations, Jumar Bioincubator, Life Sciences Australia, Life Sciences Queensland, Life Sciences WA, Medical Technology Association of Australia, Medicines Australia, Pathology Technology Australia, Research Australia and Science & Technology Australia. <\/p>\n
ENDS<\/p>\n
Media: William Sparling [email\u00a0protected]<\/a> 0416 628 276<\/p>\n